Mini: The entry-level Cooper comes with 15-inch wheels, air conditioning, a basic stereo with Bluetooth, six airbags, rear parking sensors and more. Relatively low standard specifications and high option prices – our test car had nearly $10,000 in extras - means customers must spend $5000 on options to have the same equipment as the Peugeot.

Peugeot: The mid-range 308 Active is cheaper to begin with, and has plenty of impressive standard features such as an automatic transmission, 9.7-inch touch screen, music hard drive, Bluetooth, dual zone climate control and 16-inch wheels. It's a clear winner in the value stakes.

Winner: Peugeot

Inside

Mini: A fun place that blends retro touches such as aviation-style toggle switches with modern elements including a starter button and (optional) coloured LED mood lighting. Supportive seats with an excellent driving position are assets up front, but space in the rear is tight –the centre rear seat is not one for adults.

Peugeot: The 308's cabin is a clean, crisp environment defined by a large touch screen that handles infotainment and other duties. Tiny oval-shaped steering-wheel is a novelty, though poor ergonomics place it in your lap, obscuring oddly-placed instruments. Packaging not as clever as the Mini - an extra 30 centimetres in overall length brings just a fraction more leg room.

Winner: Mini

Under the bonnet

Mini: The Cooper's 1.5-litre three-cylinder motor is a gem, smooth and powerful with thrifty 4.9L/100km economy and the ability to dash to 100km/h in 8.1 seconds – a full second faster than its larger rival.

Peugeot: While smaller in size, Peugeot's 1.2-litre engine impressively manages to make more torque and just a little less power than the Mini. Its 5.1L/100km efficiency is quite impressive given the difference in size here.

Winner: Draw

How it drives

Mini: With darty steering, sharp responses and a busy ride, the Mini cannot be mistaken for any other hatch on sale. Offers plenty of fun for drivers, though it's not the most comfortable car on the road. Optional ($250) driving modes bring normal, green or sporty settings that sharpen steering, throttle and gearchanges.

Peugeot: Much more mature on the road, the Peugeot has a well-judged ride that is easier to live with. Slower steering makes it feel less agile on the road, though a standard sports mode helps make the most of the little engine. Ultimately not as fun to drive, and too similar to an ordinary regular small car.

Winner: Mini

X-Factor

Mini: These cars cost more than a Mazda3 or Corolla but offer a point of difference. The Mini's combination of history, branding and its driving experience make it a worthwhile choice over a normal car.

Peugeot: While well-equipped and undeniably pretty inside and out, there is little to recommend the 308 over a more pedestrian alternative. A fine car that doesn't offer a sense of occasion – unlike the quirky Brit.

Winner: Mini

Conclusion

Mini: A fun package and undoubtedly the driver's pick, the Mini has plenty going for it. But stingy standard features and a seriously pricey options list could turn buyers away.

Peugeot: Pretty and easier to live with day-to-day, the Peugeot is the sensible choice here. But drivers looking for something special should look elsewhere.